Gen Y would happily bank with tech giants Apple, Google

The biggest threat to financial institutions arguably comes from the tech giants, according to a report on the future of banking.Source:Supplied

MOST Gen Y-ers would consider banking with a tech giant such as Google or Apple if it was possible, but not Facebook.

That’s right, when it comes to handling your money, protecting your savings, or maybe even getting a mortgage one day, young Australians would happily consider their favourite big tech companies — if it were an option.

That’s according to a report by professional services provider KPMG which found 84 per cent of Aussies aged 18 to 30 would consider banking with the likes of Apple if they offered a better product or deal than a traditional bank.

There is certainly no love lost for the big banks in this country, and so perhaps its not much of a surprise that young Australians would happily opt for more favoured tech brands. The report found that Gen Y didn’t demonstrate any particular loyalty to lenders.

It may seem like a strange question to ask, but given how integrated major tech companies are in our lives, and their penchant for expansion into new areas, it’s not entirely unthinkable that they could stray into the world of banking.

For those behind the study, the findings highlights the importance of using technology if banks are to secure business from younger customers.

“This is in line with the importance given to getting the best value out of their investment and the fact that tech giants are already integrated into their daily lives and are able to deliver a more seamless experience,” said KPMG’s Banking on the Future Report.

“Failing to act further widens the opportunity for competitors and fintechs to take the prize.”

There is plenty that annoys banking customers.Source:Supplied

Gen Y-ers are more likely to consider Google and Apple, but are unlikely to use Facebook because of data and security concerns.

We may be cool with making all our personal data and the minute details of our lives available to Mr Zuckerberg, but we draw the line at our savings account.

“While this cohort will support new fintech disrupters, the biggest threat to financial institutions arguably comes from the tech giants that already have a prominent brand presence among this group,” the report said.

They also want to conduct all their transactions through do-it-all apps on their phone or watch without having to take out their wallet. And they’re only likely to set foot in a bank if they want something big or if there’s a problem.

KPMG’s head of financial services management consulting, Daniel Knoll, says banks and other financial institutions have to deliver an enhanced customer experience to attract and retain younger customers.

“Convenience, whether managing money, making payments or accessing funds, has become the cornerstone of true engagement,” Mr Knoll said on Wednesday.

The KPMG report surveyed more than 1,400 Gen Y-ers on what they want and expect from banks and other financial institutions.

The respondents — aged between 18 and 30, university-educated, relatively well paid, tech-savvy and globally minded — make up 22 per cent of Australia’s population and are expected to make up 50 per cent of the workforce in five years, says KPMG.